Next Investors logo grey

Empire Resources has the potential to add mine life at Penny’s Find

|

Published 28-NOV-2016 11:46 A.M.

|

2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

An independent assessment of Empire Resources (ASX:ERL) Penny’s Find gold deposit has indicated the potential to extend the project’s mine life through a new underground mining on completion of the open pit operation. The deposit is located 50 kilometres north-east of Kalgoorlie in Western Australia.

Geotechnical findings are based on a JORC compliant indicated and inferred gold resource of 170,000 tonnes grading 5.4 grams per tonne gold beneath the scheduled pit floor. ERL will be completing a prefeasibility study with a view to confirming the economic viability of mining the underground resource.

Commenting on these developments, ERL’s Managing Director, David Sargeant said, “The results of the geotechnical study are very encouraging and indicate the real possibility of extending the mine life to at least three years with the prospect of any further exploration success leading to an even longer mine life”.

In the interim, Sergeant noted that a road diversion at the project had taken longer than initially anticipated but it was expected to be finalised with all necessary approvals to hand within days, allowing mining of the open pit to proceed.

Importantly, a preliminary underground mine design had already been initiated to ensure it was able to mesh smoothly with the open pit mining operation. The following is a design of how such an initiative could be executed.

Next Investors Image

Confirmation of a mine life extension could provide share price momentum, and perhaps this accounts for the company’s shares opening approximately 6.5% higher on Monday morning.

However, it should be noted that share price trends should not be used as the basis for an investment decision, and independent financial advice should be sought if considering speculative mining stocks such as Empire Resources.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.